3rd Annual Group Exploration Technical Report - Roper Valley Iron Ore Project - Project Report: GR260/12 including ELs 24101, 24102, 26412, 28497 and 30618 for the period 28 February 2018 to 27 February 2019

Abstract

This is the Third Annual Group Exploration Technical Report for Northern Territory Iron Ore Pty Ltd (NTIO) owner of - the Roper Valley Iron Ore Project GR260/12. That Project includes ELs24101, 24102, 26412, 30618 and 28497. This report includes exploration activity from 28 February 2018 to 27 February 2019. The Roper Valley Iron Ore Project (the Project) camp at Area C is located 550kms by road from Darwin via the Stuart Highway and then via Roper Highway east from Mataranka 140kms towards Sherwin Creek. The Project area lies in the Western Macarthur Basin within Roper Group stratigraphy. NTIO explores and develops laterally extensive ironstone units associated with the Sherwin Formation. In 2018/19 the following exploration activities were conducted: Helicopter based rock chip sampling in the eastern tenements; Strip ratio assessment of Deposit C; Application of ore sorting and core scanning technology from existing drill core to optimise recovery; Independent accurate surveying of drill hole RLs to finalise drill section interpretations at Deposit C. Helicopter based rock chip sampling within the eastern tenements at Yumanji East, South and on EL 26412, confirmed high grade and regional extent of the Lower Ironstone identified by Sherwin in reconnaissance rock chip sampling in 2011 and 2012. The programme met approval from Limmen National Park and the careful avoidance of Restricted Work Areas (RWAs) under the Aboriginal Area Protection Authority. NTIO collected samples from over 70 sites in three areas each 5 to 10kms in length. Yumanji sampling targeted the Lower Ironstone Unit associated with high Fe grades. Best access and highest grades were recorded from Yumanji East, consistent with results of the 2011 programme. The outcrop exposures were typically within Lower Ironstone Unit, as at Deposit C. A reconnaissance drilling programme is recommended over this area in the future based on extensive high grade rock chip results. Future RC drilling in this area would have challenges of isolation, site preparation and difficult access, as well as AAPA avoidance consideration. Helicopter support would likely be required with any future drilling for practical access and safety consideration. Within EL 30618, helicopter based sampling was conducted at South St Vidgeon along a broad shallow dipping mesa. This location was closer and with easier access than Yumanji. However, weaker iron results were received, confirming it being outside Lower Ironstone stratigraphy. This ironstone at South St Vidgeon is less hematitic and more limonitic to goethitic in appearance. Geological literature by Ferenczi suggests this to be an oolitic ironstone bed within the Munyi Member, overlying Sherwin Formation Stratigraphy. This is uncertain and would need drill testing. It was intended to sample within EL 28497 however there was virtually no ironstone outcrop evident with much of the area under AAPA protection. NTIO reviewed waste-ore strip ratios for Deposit C, mostly within EL 24101, using the total exploration drill database of several hundred reverse circulation and some diamond core holes. The dip in topography is assumed similar to ironstone dip so may suggest no increase in strip ratio down dip, improving mining economics. Within each drill hole at deposit C, strip ratios were calculated at various Fe cut off grades from 30% to 50%. Results were recorded in table form and interpreted in plan view. Most sections showed strip ratios increase steadily down dip. Ratios along some sections increased more gradually suggesting structural effects on grade. It is possible local structural fault block? movement emanating from the broad fold nose may explain any Fe enrichment locally as in the area of the bulk sample pit. Deeper drilling is required down dip to definitively close off the resource at depth. In 2018/19 a trial was set up applying ore sorting and scanning technology on existing drill core. This was done to assess density variation within Deposits C and W and explain mineralogical differences that might improve iron recovery and density prediction for tonnes mined in a future mine operation. Limited available Sherwin drill core was obtained from Nagrom Laboratories in Perth. During the 2018 reporting period drill collar locations from the 2017 drilling programme were accurately surveyed - particularly required for collar RL. From that survey, sections were able to be properly represented.